Australia: Parmalat wins private label contract

It has been announced that Parmalat has won a five-year contract “to supply Woolworths’ private label milk in NSW and South Australia”.

According to Food and Drinks Business News, the company was the successful contender a $100 million battle for the Woolworths’ private label brand contract after edging out rivals Lion and Murray Goulburn. Lion is said to have retained the contract in Tasmania.

The Australian also report that the decision is likely to come as a blow to Lion, owned by the Japanese firm Kirin, which suffered a sales drop after Murray Goulburn won a deal to supply Woolworth’s main rival Coles last year.

The newspaper also notes that the deal will mean that Parmalat, along with Murray Goulburn, is now the biggest own-brand supplier of milk to Australian’s main two supermarkets.